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Controversial reforms aimed at encouraging greater competition in the European
audit market moved a step closer yesterday after an influential committee
reached a compromise after months of political deadlock.

Quoted companies could be forced to switch auditors every 14 years under
proposals put forward by the European Parliament’s legal affairs committee,
rather than the six years initially proposed by the European Commission in
response to the financial crisis.

Michel Barnier, the Internal Market and Services Commissioner, wanted the
shorter term to help to break the stranglehold of the so-called Big Four —
Deloitte, Ernst & Young, KPMG and PwC — over large